South African leader wanted Bitcoin and believed it will pay their debt

[Ishicryptic]

Bitcoin has gained so much potentials that people are seeing it as a way out of financial hardships and sustainable future, this is good for the image of Bitcoin and it's adoption. But I don't think that Bitcoin alone can be the magic to a sustainable financial future, it is a digital currency that if held on the long term can give you returns on investment. What you do with the profit entirely depends on you the holder, so the profit doesn't matter much if it is misused or in the cases of governments and institutions, if it is embezzled. Bitcoin reserved funds seems to be a starting trend for cities and governments, if it catches on that will be a big plus for Bitcoin adoption.

[icalical]

The idea by Mzwanele Manyi to use Bitcoin to clear the debt of South Africa is very bold but quite risky. At 75% of GDP, the volatile nature of Bitcoin could easily present financial stability challenges if used as an attempt at debt clearing. While increasingly popular, Bitcoin is not used widely enough as any nation's reserve, and depending on such unpredictability can result in unexpected problems. In the event of Bitcoin's national, scale implementation, South Africa has to assess the risks and benefits cautiously. Furthermore, economists often note that such long-term strategies as the increase of industrialization or fiscal discipline may be more viable for debt reduction instead of relying solely to Bitcoin, which eventhough is striving it still very volatile. Don't get me wrong, I am a big bitcoin supporter to be used legally in government, there is also news from US that they will use Bitcoin as reserve but US and South African econonmy is very different, I suppose US can take risk, while South Africa can't.

[hero_the_bossman]

Bitcoin has gained so much potentials that people are seeing it as a way out of financial hardships and sustainable future, this is good for the image of Bitcoin and it's adoption. But I don't think that Bitcoin alone can be the magic to a sustainable financial future, it is a digital currency that if held on the long term can give you returns on investment. What you do with the profit entirely depends on you the holder, so the profit doesn't matter much if it is misused or in the cases of governments and institutions, if it is embezzled. Bitcoin reserved funds seems to be a starting trend for cities and governments, if it catches on that will be a big plus for Bitcoin adoption.

We can say that cities and countries alike recently started seeing Bitcoin differently, but the question would be who would be able to accomplish their plans successfully and be an example for others to follow.
Only time would tell.

[Kemarit]

Bitcoin has gained so much potentials that people are seeing it as a way out of financial hardships and sustainable future, this is good for the image of Bitcoin and it's adoption. But I don't think that Bitcoin alone can be the magic to a sustainable financial future, it is a digital currency that if held on the long term can give you returns on investment. What you do with the profit entirely depends on you the holder, so the profit doesn't matter much if it is misused or in the cases of governments and institutions, if it is embezzled. Bitcoin reserved funds seems to be a starting trend for cities and governments, if it catches on that will be a big plus for Bitcoin adoption.

We can say that cities and countries alike recently started seeing Bitcoin differently, but the question would be who would be able to accomplish their plans successfully and be an example for others to follow.
Only time would tell.

El Salvador has done it before, MSTR and Saylor proved their critics wrong, Bhutan sold recently but they continue to mine Bitcoin. So by the looks of it, investing on Bitcoin is sustainable and there are a lot of perks from it.

So if they will have to look at it, there is no question that they will need to execute it. Just imagine if US under Trump could be one of the biggest buyer for this year, how big is the bull run gonna be in 2025. They really need to look at Bitcoin as one of the assets that a nation can invest by next year.

[NotATether]

Any such move to use bitcoin to wipe out debts must run for at least 20 years minimum, maybe 50 years for optimal results. So the effects of this will not be seen in most people's lifetimes. Halvings take time to correct the price.

[arwin100]

https://x.com/MzwaneleManyi/status/1871159105848742196

If you are South African, you might be familiar with him, as a political figure. Although I'm not 100% agree with him about liquidating the debt thru Bitcoin, but still it's a good experiment as well for that country to make Bitcoin as national reserve and it seems to be the trend next year. And obviously, this is the effect of Trump 2.0 in the US.

Maybe they just been caught up on the idea that the same on what happen to El Salvador there's also a great developments will happen to their country if they also try to participate on the scene and invest some of their country wealth on Bitcoin.

Bitcoin now is gaining a lot of attention and its good that they are considering to invest with Bitcoin since this is beneficial to them and also for all people who use Bitcoin.

There's interesting article about Africa will be the next frontier for cryptocurrency https://www.un.org/africarenewal/magazine/april-2018-july-2018/africa-could-be-next-frontier-cryptocurrency if leaders is open for growth and adapt bitcoin and crypto provably that they can take advantage and gained a lot of profit from revenues that can possibly generated from businesses that will operate in their country also other things related to that matter which been used by their citizens.

[Alpha Marine]

If you are South African, you might be familiar with him, as a political figure. Although I'm not 100% agree with him about liquidating the debt thru Bitcoin, but still it's a good experiment as well for that country to make Bitcoin as national reserve and it seems to be the trend next year. And obviously, this is the effect of Trump 2.0 in the US.

We really need to stop being excited by these politicians. If the whole world were cosying up to cow dung, politicians would come and justify how cow dung is the next best thing. We should be able to see them for what they are by now.
Even Trump who seemed like the most loved politician in the crypto space was openly against bitcoin before now. That's a classic example of how politicians are. I can't confidently say their intentions or love for bitoin are genuine or not, but I know if it was not something that would give them votes they wouldn't care about it.

This shouldn't be taken out of context, politicians and governments embracing bitcoin is a good thing, it's things like this that promote adoption and reduce restrictions on bitcoin and Bitcoin-related services, but we should understand that politicians are just opportunistic people who will say or do anything to stay relevant.

[Churchillvv]

https://x.com/MzwaneleManyi/status/1871159105848742196

If you are South African, you might be familiar with him, as a political figure. Although I'm not 100% agree with him about liquidating the debt thru Bitcoin, but still it's a good experiment as well for that country to make Bitcoin as national reserve and it seems to be the trend next year. And obviously, this is the effect of Trump 2.0 in the US.

Perhaps I wouldn't say this is a well analysed statement rather a wish or expectation that wouldn't for some reason come through. Even though it's obvious that politicians only speak of things that benefit them more yet Mzwanele Manyi is making a whole lot of sense in his opinion of South Africa investing bitcoin, I would have said it's a good initiative but for the fact that such investment is not genuinely for the interest in bitcoin but solely for a selfish aim of eradicating nation debt.

However it's true that bitcoin could produce the expected results yet it depends solely on how much South Africa would be willing to invest or hold in bitcoin till such amount that it's mother country owes.
I don't think the government would agree with him for any reason to take such action as corruption has eating deep into the government hence personal benefits are the most interest of the leaders.

[fikrett]

Any such move to use bitcoin to wipe out debts must run for at least 20 years minimum, maybe 50 years for optimal results. So the effects of this will not be seen in most people's lifetimes. Halvings take time to correct the price.

Yep. It's a long-term plan and deed, otherwise, it's all fuzz and won't bring much progress to the situation in the country.
I do hope it will be all done according to the known facts.

[Rabata]

When the leaders of rich countries are trying to reserve Bitcoin, other countries will also follow the same way. In this case, those who come quickly will have the possibility of implementing their goal first. An investor who invests in Bitcoin will definitely get their money back after a certain period of time. That is why if the leaders who are leading the country plan to deposit a part of their reserve currency in Bitcoin and hold it for the long term, then they will definitely be able to benefit from a large part of the investment which they can spend on the development of their country. As El Salvador has planned.

After the Trump administration comes to power, if their plans are implemented correctly, the price of Bitcoin will be even more bullish, which is why those who are wise will definitely try to hold Bitcoin in every way.

[john_egbert]

When the leaders of rich countries are trying to reserve Bitcoin, other countries will also follow the same way. In this case, those who come quickly will have the possibility of implementing their goal first. An investor who invests in Bitcoin will definitely get their money back after a certain period of time. That is why if the leaders who are leading the country plan to deposit a part of their reserve currency in Bitcoin and hold it for the long term, then they will definitely be able to benefit from a large part of the investment which they can spend on the development of their country. As El Salvador has planned.

After the Trump administration comes to power, if their plans are implemented correctly, the price of Bitcoin will be even more bullish, which is why those who are wise will definitely try to hold Bitcoin in every way.

Many more bigger entities are hopping onto the train.
Whether it will be successful or not - only time will tell.
However, it's great to see such developments - the world sees Bitcoin differently and tries to implement it, albeit in a bit different way that it was envisioned.

[Ever-young]

The proposal is a good one; they should also tap into that line and not just rely on gold alone but on the area that the Op is pointing at. Using bitcoin to clear up their debt in 2-year intervals is a bit too much if you ask me; it's like the proposal is indirectly for making enough money to clear off their debt.

No doubt they will see profit from bitcoin investment, but the time at which they can see the type of profit that they are expecting might not be as soon as that 2 years, although Bitcoin price can surprise us, but still it's good to bring down the expectations and focus on other means of clearing their debt rather than relying on Bitcoin profit.

[kryptqnick]

Bitcoin is still getting stronger over the years, but we can't know if it's in full force yet or not. Also, as global economy is growing and there's plenty of wealth already in it, too, I don't think the growth of Bitcoin will lead to devaluation of gold. Both can continue growing, they're not mutually exclusive.
As for debt, I suppose that depends on how much BTC we're talking about and how much debt. I'd say expecting Bitcoin to grow 2x over 2 years is quite realistic, for instance, but I doubt that's the kind of return on investment a country needs to overcome debt. Moreover, Bitcoin can easily cost twice as little as it does today in 2 years due to historically long bear markets.

[Cryptoprincess101]

I would think that reducing corruption within their country is a better way to solve their debt issues. If not, Bitcoin would just be an easier way to move money around their pockets.

I wonder if some governments are taking bitcoin as a get rich quick scheme for them to say that bitcoin can liquidate the country's debt within two years. If corruption is to be tackled without bias, most countries wouldn't have had huge debts but because of corrupt practices and lack of technical economic principles have made many countries to only result to borrowing as an escape route to solve their country's economic problems. When they see government as a medium to enrich their private pockets and embezzle public funds why wouldn't they owe large debts.

[South Park]

I would think that reducing corruption within their country is a better way to solve their debt issues. If not, Bitcoin would just be an easier way to move money around their pockets.

I wonder if some governments are taking bitcoin as a get rich quick scheme for them to say that bitcoin can liquidate the country's debt within two years. If corruption is to be tackled without bias, most countries wouldn't have had huge debts but because of corrupt practices and lack of technical economic principles have made many countries to only result to borrowing as an escape route to solve their country's economic problems. When they see government as a medium to enrich their private pockets and embezzle public funds why wouldn't they owe large debts.

Politicians are like most people in the sense that they are always looking for a silver bullet to solve their problems, but even if it were to work, as long as the corruption is still in place we will see those countries accumulating huge debts again, due to this, solving the debt issue of most countries is not as important as solving the corruption issue, as once you can solve corruption, you can solve the debt issue given a long enough period of time.

[Zoomic]

Many of these countries facing some serious financial issues would be making a huge mistake thinking bitcoin is the solution to the country's economic issues. I have read some similar topics like that talking about how bitcoin can save a country. For a country like South Africa and other African countries, they need more than just bitcoin to keep the country's economy balanced. With the amount of debt South Africa owes, I doubt the possibility of them getting back such amount in two years. They should fight corruption first in their country because this is the root cause of the problems almost every African country is facing. How sure are they that the country would be any way better when corruption is still there? They should also look into other sectors of the economy instead of waiting for bitcoin to do the magic.

[Pi-network314159]

https://x.com/MzwaneleManyi/status/1871159105848742196

If you are South African, you might be familiar with him, as a political figure. Although I'm not 100% agree with him about liquidating the debt thru Bitcoin, but still it's a good experiment as well for that country to make Bitcoin as national reserve and it seems to be the trend next year. And obviously, this is the effect of Trump 2.0 in the US.

Although the plan may work but it will not be achieved within a short period of time, because according to the information on the op, they plan to  liquidate there economy in 2years from bitcoin investment. and we all know how long it take bitcoin to increase. at least they should be expecting a high return from 5 to 10 years or 10-20 years. bitcoin is not a get rich quick scheme where you invest now and make  whole lot of money. so they can make it a federal reserve like gold, and HODL it for a long period of time.

[Raflesia]

Although in the end I need to question the purpose because honestly it will be a little difficult to pay off the country's debt when they are just starting out in bitcoin because after all this requires a process that really must be considered and not necessarily when adopting bitcoin then everything will become easier because we can take the case of El Savador where they although now are quite good but in the end there are many things that the government needs to fix including socialization to its citizens so as not to consider this policy as a mistake.

But even so as long as there are good intentions to adopt bitcoin, of course this is a very good step and needs to be appreciated even though until now this is just a plan, it does not mean that they will definitely be in bitcoin but we need to appreciate that in the end the longer it looks like bitcoin is getting better in changing everyone's mindset.

[joniboini]

They should fight corruption first in their country because this is the root cause of the problems almost every African country is facing. How sure are they that the country would be any way better when corruption is still there?

Sadly most politicians will say that yet don't do anything concrete because they don't want to fight the system. Not to mention some of them are just corrupt and enjoy the corruption too. I wouldn't be surprised if they say stuff like this just because Bitcoin is the new trend, and even if their plan is successful they'll ditch crypto when the bear market hits.

I won't take anything they say on social media seriously. Just watch what they're doing to analyze what their real plan is. It's better to be cautious, especially when someone plans to use crypto to be free from debt in 2 years.

[retreat]

Many politicians use Bitcoin as a political tool to boost their image and make themselves seem smarter and more concerned about their country's economy, when in fact they don't understand how it works and how it impacts the economy on a larger scale. It's funny to see them believe that Bitcoin can revolutionize the financial system and change their financial condition for the better, to the point of making them able to pay off their debts. They can invest and make a profit in the long term on it, but to pay off their debts, it's just funny, it's like they're expecting a miracle, especially in a period of 2 years, it doesn't make sense.

Instead of daydreaming too much, they'd better focus on solving their corruption and bureaucratic problems that are in disarray.